Construction Industry Council - Annual Report 2024

ANNUAL REPORT 2024 207 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS New and amendments to HKFRS Accounting Standards in issue but not yet effective The Group has not early applied the following new and amendments to HKFRS Accounting Standards, potentially relevant to the Group, that have been issued but are not yet effective: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments 3 Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature – dependent Electricity 3 Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 Amendments to HKFRS Accounting Standards Annual Improvements to HKFRS Accounting Standards – Volume 11 3 Amendments to HKAS 21 Lack of Exchangeability 2 HKFRS 18 Presentation and Disclosure in Financial Statements 4 HKFRS 19 Subsidiaries without Public Accountability: Disclosures 4 1 Effective for annual periods beginning on or after a date to be determined 2 Effective for annual periods beginning on or after 1 January 2025 3 Effective for annual periods beginning on or after 1 January 2026 4 Effective for annual periods beginning on or after 1 January 2027 Except for the new and amendments to HKFRS Accounting Standards mentioned below, the Council members anticipate that the application of all other new and amendments to HKFRS Accounting Standards will have no material impact on the consolidated financial statements in the foreseeable future. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments The amendments to HKFRS 9 clarify the recognition and derecognition for financial asset and financial liability and add an exception which permits an entity to deem a financial liability to be discharged before the settlement date if it is settled in cash using an electronic payment system if, and only if certain conditions are met. The amendments also provide guidance on the assessment of whether the contractual cash flows of a financial asset are consistent with a basic lending arrangement. The amendments specify that an entity should focus on what an entity is being compensated for rather than the compensation amount. Contractual cash flows are inconsistent with a basic lending arrangement if they are indexed to a variable that is not a basic lending risk or cost. The amendments state that, in some cases, a contingent feature may give rise to contractual cash flows that are consistent with a basic lending arrangement both before and after the change in contractual cash flows, but the nature of the contingent event itself does not relate directly to changes in basic lending risks and costs. Furthermore, the description of the term “non-recourse” is enhanced and the characteristics of “contractually linked instruments” are clarified in the amendments.